Eco-Dumping

Eco-Dumping

The act of exporting a good from a country with new or poorly enforced environmental protection laws. These laws generally add to the cost of producing a good, so the export likely is much less expensive in an importing country than domestically produced goods of the same type. This can result in a large profit for the exporter. In addition to the costs to the environment (and the accompanying ethical questions), this can be detrimental to domestic business in the importing country. Many jurisdictions attempt to counteract dumping by setting up tariff barriers. See also: Dumping.